• March 1, 2021

ELAM: Killing unity on day one - Odessa American: Dennis Elam

ELAM: Killing unity on day one

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Posted: Sunday, January 24, 2021 3:00 am

Former Trans Canada now TC Energy explained the benefits of the Keystone Pipeline to Team Biden. It included 10,000 American union jobs, steel pipe made in the USA, $10 M Green Job Training Fund, $500 M for suppliers, and 100% renewable power to operate the pipeline. Team Biden stopped the Pipeline Construction on Day One. This strands investment in Canada, kills jobs in America, and angers one of our biggest trading partners.

WSJ Thursday January 21 2021

Mark McManus, president of the Association of Union Plumbers and Pipefitters replied, “Mr. Biden is listening to the voices of fringe activists instead of union members.”

The late Senator John Tower observed that the Democratic Party is a loose coalition of special interest groups that somehow pull together each four years for an election. The Keystone situation is a perfect example of that observation. It is tough to serve multiple masters with different goals. Did anyone notice Antifa attacked Democratic headquarters yesterday, so much for the Winter of Love.

This column is on record predicting a negative direction for energy policy the next four years. Bingo! That came true on Day One of the Biden Presidency. We will update you on Jennifer Granholm’s Day One as Energy Secretary once she is confirmed.

The Wall Street Journal claims Janet Yellen is a great economist. One cannot tell that by her testimony regarding a national $15 minimum wage. She testified doubling the current minimum wage would have no effect on business. Understand the minimum wage for tip waiters is just over $2. So that would be a 600 percent increase.

And it gets worse. Biden wants to raise the corporate tax rate from 21 percent (lowered under Trump) to 28 percent. The nation’s largest 25,000 firms pay 90 percent of the corporate tax revenue. But that would leave the six million small firms (less than $2.5 M in annual profit) to pay another 7 percentage points in tax. Given that many of these are family owned restaurants and bars which have been closed, this is another way to prevent re-investment in business, not to mention a raise for anyone.

Peter Robb, general counsel for the National Relations Board, was told to quit or be fired. No President has fired a general counsel since the NLRB was formed in 1947. But there are three Republicans and one Democrat on the board. A different general counsel can slow things while Biden scrambles to reward his Union donors. Robb refused to resign which may spark a legal confrontation.

Tech stocks have soared to new highs and investor enthusiasm is on boil. We are at the end of another 58-day rally. Previous stints have ushered in a correction. We will see.

DAILY OIL PRICE: February 19

  • Crude Oil: 59.24   (-1.28).
  • Nymex MTD AVG:  58.1590.
  • Natural Gas: 3.069   (-0.013).
  • Gasoline: 1.8069   (+0.0126).
  • Spreads: March/April   (-0.02)   April/May   (+0.20).
  • Plains WTI Posting: 55.72   (-1.28).
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